Dive Brief: 

• Digital video production companies Alloy Digital and Break Media—known for housing top YouTube talent like Smosh and ScreenJunkies—merged to form Defy Media.
• The 50-50 merger is an effort by these top YouTube players to more efficiently make money on the platform.
• The merger will also allow the two companies, who have a combined total of 30 million YouTube subscribers, to draw more traffic to their own sites—which have a combined total of 50 million monthly visitors—resulting in less of their revenue going to YouTube. 

Dive Insight: 

This merger is reflective of where the digital video industry is going as a whole. The market is very fragmented, making it difficult for advertisers to navigate. In the near future, we will likely see more consolidation as companies seek more value in their offerings.